Business and Regulatory Issues of Wirelss Convergence Services

APT/AWF/REP-06

APT SURVEY REPORT ON

BUSINESS AND REGULATORY ISSUES OF WIRELSS CONVERGENCE SERVICES

No. APT/AWF/REP-06

Edition: March 2008

/ ASIA-PACIFIC TELECOMMUNITY
The APT Wireless Forum / Document
APT/AWF/REP-06

March 2008

Source: AWF-IM4/OUT-10

APT SURVEY REPORT ON

BUSINESS AND REGULATORY ISSUES OF WIRELSS CONVERGENCE SERVICES

I. Introduction

During the 3rd AWF meeting in Vietnam, TG-3 had decided to perform a survey on the business and regulatory issues of wireless convergence services. The wireless convergence service means the convergence service between wireless telecommunication and wireless broadcasting, e.g. mobile multimedia broadcasting, IPTV on BWA, etc. The objectives of this survey are to gather information about business and regulation circumstances on wireless convergence service in APT region and to find out issues which should be resolved to facilitate wireless convergence services in Asia-Pacific region.

After AWF Interim Meeting in January 2007, the questionnaire in the annex 1 sent to all of APT member administrations. The questionnaire consists of 9 questions about current and future wireless convergence services, market survey results, regulatory laws, bodies, and challenges, plans for DTV transition, opinions on digital dividend and harmonization, and so on. Responses for the questionnaire have been submitted from 6 administrations, Afghanistan, Hong Kong, Indonesia, Japan, Papua New Guinea, and Republic of Korea (in alphabetic order). This report summarizes the survey results.

II. Survey Results

Q1. Do you have wireless convergence services which have been started in your administration? If you have, please describe the status quo of them.

A. Afghanistan

Afghanistan doesn't have any wireless convergence service till yet.

B. Hong Kong

In Hong Kong, Mobile TV over 3G services is being provided. Smartone launched video streaming services in December 2004. CSL launched 3G interactive mobile TV service in November 2006. PCCW launched 3G mobile TV trial service in June 2006. Smartone, CSL and PCCW are 3G mobile services operators in Hong Kong. Operators are using the 3G/WCDMA spectrum in the 1.9/2.1GHz band.

For Smartone, the monthly fee is HK$38 plus HK$1/minute. Services/contents include news, sports/football and music. For CSL, the monthly fee is HK$30 per month including 50 「3G mobile TV」minutes and the charge thereafter is HK$1 per minute. CSL provides about 30 infotainment stations and the content of these stations include real-time news, traffic news, horse racing, football, drama and music channels. For PCCW, the monthly fee is HK$48 per month including 4000 minutes viewing time and the charge thereafter is HK$1 per minute. PCCW has 12 channels that cover news, sports, cartoon and drama. The services of operators cover most the areas in Hong Kong.

C. Indonesia

In Indonesia, Mobile TV over 3G network has been provided since mid of 2006 by 2 GSM/UMTS operators, Telkomsel and Excelkomindo. They provide circuit switch video call based for liveTV (local TV) services and packet switch/streaming for recorded tv/video content.

For Telkomsel, the circuit switch video call services can be accessed through short code number via video portal/gateway (e.g., Telkomsel video portal subscsribers have to call 8800 video call to access the servgices) while packet swicth/streaming video/tv content can be accesses via WAP portal (e.g.. Wap.telkomsel.com). The pricing policy are time based charging for circuit switch video call and volume based charging for streaming and no monthly/subscription fees using pay as you go concept.

The other operator Excelcomindo, has several packet 3G Mobile TV offered, such as International TV Pay TV package, Rp. 30.000,- per month, SCTV package (SCTV and O-Channel), Rp. 20.000, - per month, Liputan 6 SCTV and JakTV, Rp.2000 per streaming.

TV over 3G service coverage follows 3G coverage. By today July 2007 Telkomsel as the biggest operator already covered 44 cities accross Indonesia nationwide. While Excelcomindo service coverage has covered 13 cities in 2007 and has cooperation with 4 local TV and 4 international TV / conent provider.

D. Japan

In Japan, ISDB-T one segment broadcasting services have been provided since April 2006 by broadcasters including NHK and other commercial broadcasters. They use UHF TV (470-710MHz) bands. The same contents of terrestrial broadcasting are provided with no charge and the coverage area is whole extent of Japan

E. Papua New Guinea

There is no such service presently in Papua New Guinea.

F. Republic of Korea

In Korea, Satellite DMB and Terrestrial DMB services have been launched in May and December 2005, respectively.

For providing T-DMB services, 1 nationwide broadcaster, 5 national capital area broadcasters, 13 regional broadcasters were selected. Currently commercial services in national capital area have been already provided and it will be provided by the end of 2007 in the whole country. Among terrestrial TV bands, 174~216 MHz frequency blocs (ch7-ch13) are allocated to T-DMB services.

<Figure 1. Channel Assignment for capital area broadcasters in Korea

Currently T-DMB service is free and several business models are being developed according to the objectives of each service providers. The free service model is for providing public service just like terrestrial TV services. It is expected to diminish the digital divide and also to be effective to disaster broadcasting and public educations.

In S-DMB, TU-Media is the sole service provider in Korea. It uses Ku-band (12/13 GHz) and S-band (2.6 GHz). Subscription fee is 20,000 Won (22 US $) and monthly service fee is lower than 11,000 Won (12 US $).

<Figure 2. Service flow and frequency band of S-DMB in Korea

Q2. Do you have plans to introduce wireless convergence services to your administration in near future? If you have, please describe the status quo of them.

A. Afghanistan

Afghanistan is now making policies for it, but it will take more time to be approved.

B. Hong Kong

The Hong Kong Special Administrative Government (HKSARG) issued a consultation paper in January 2007 soliciting views on the introduction and regulation of commercial mobile TV services and other digital broadcasting services (e.g. digital audio broadcasting etc.) in Hong Kong with focus in four regulatory aspects (i.e. spectrum availability, spectrum allocation, spectrum assignment and licensing arrangement). Subject to the outcome of this consultation, the HKSARG will work out a draft implementation framework for introducing mobile TV for a second round of consultation.

C. Indonesia

Indonesia will started migration of Fixed Free-to-air DVB-T in 2007 on UHF Band IV and V (470 – 806 MHz) and VHF Band III (170 – 230 MHz). When the frequency planning and migration set, we will study the feasibility of the spectrum dividend to allocate for mobile multimedia services (pay services). Free-to-air DVB-T is expected to launch beginning of 2008.

D. Japan

Not Applicable

E. Papua New Guinea

Apart from a recently issued licensed for WiMAX service, which is principally intended to serve only government departments, there are no plans that are known at this stage.

F. Republic of Korea

Currently some operators prepare the mobile IPTV services. Since it is only initial stage, the full mobility is not considered yet and they try to construct the end-point (network equipment- receiver) to be wireless.

Also WiBro is expected to be a good solution to support broadcasting & telecommunication convergence service with full mobility. WiBro can be used as a media to serve Mobile IPTV and two-way DMB services.

Q3. Do you have the results of market analysis on the wireless convergence services which are answered in Q1 and Q2? If you have, please describe it.

A. Afghanistan

Not till yet.

B. Hong Kong

No.

C. Indonesia

Mobile TV is one of the biggest hit in 3G services due to operator’s promotion of 3G services relate to mobile TV. The quality level is still low due to live mobile TV over 3G still using circuit switch bearer of 64 kbps which can not meet the quality requirement as analog TV today.

D. Japan

7 millions one segment broadcasting receivers are already shipped in Japan.

E. Papua New Guinea

No.

F. Republic of Korea

As of May 2007, 6.4 million subscribers (T-DMB: 5.3 million, S-DMB 1.1 million) enjoy Mobile TV services in Korea. The major types of receivers are car installable (44.2%) and cellular phone (38.5 %).

By the end of 2012, the number of subscriber is forecasted to reach to about 30 million.

According to current survey results on T-DMB services, 64.2% of customers answered that they satisfied the current service by reasons of ‘good to utilize short time anywhere’ (39.4%), ‘real time TV watching is available outside the house’ (27.9%), ‘good to get information outside the house (25.2%), and so on. On the other side, 8.3 % of customers do not satisfy the current service. The main reasons of dissatisfaction are ‘insufficient service coverage (54.2%)’, ‘Short battery life (16.9%), and so on. Service coverage is shown to be the main bottleneck to be overcome.

<Figure 7. Satisfaction and Dissatisfaction on T-DMB Service

DMB consuming places show the characteristics of DMB service. The majority of people enjoy DMB while they are moving in vehicles, such as bus or subway (54.8%) and car (35.5%).

For DMB TV program, soap opera (drama) is the most favored contents by single response and news and weather were the most favored by multi response. It shows that DMB is expected to be an “Infortainment (Information + Entertainment)” media

Q4. Please describe your regulatory bodies and regulatory laws for telecommunication, broadcasting, and wireless convergence service using the table below.

A. Afghanistan

Afghanistan has ‘Afghanistan Telecommunication Regulation Law’ for regulation.

B. Hong Kong

Regulatory Laws / Regulatory/Policy Bodies
Wireless Telecommunication / Telecommunications Ordinance (Cap.106). / Office of the Telecommunications Authority (OFTA)
Wireless Broadcasting / Network: Telecommunications Ordinance (Cap.106)
Programme: Broadcasting Ordinance (Cap.562).
For wireless sound broadcasting services, both the carrier and programme services are governed by the Telecommunications Ordinance (Cap.106). / At present, the Broadcasting Authority (BA) regulates television and radio broadcast services in accordance with the Broadcasting Ordinance (Cap.562) and Part IIIA (Sound Broadcasting Service) of the Telecommunications Ordinance (Cap.106), respectively. On the other hand, the Telecommunications Authority (TA) regulates the telecommunications sector in accordance with the Telecommunications Ordinance and the technical standards for broadcasting services.
Wireless Convergence Service / The HKSARG is considering conducting a comprehensive exercise to review and rationalize the Telecommunications Ordinance (Cap.106), Broadcasting Ordinance (Cap.562) and Broadcasting Authority Ordinance (Cap. 391) and the enactment of a new comprehensive Communications Bill that encompasses all the necessary provisions for the effective regulation of the evolving communications sector in the convergence environment. / The HKSARG is considering the establishment of a unified regulator for the entire electronic communications sector.

C. Indonesia

Regulatory Laws / Regulatory/Policy Bodies
Wireless Telecommunication / Telecommunications Law / DG Postel/Department of ICT
Wireless Broadcasting / Telecommunications Law
Broadcasting Law / DG Postel/Department of ICT
DG Broadcasting/Department of ICT
Indonesian Broadcasting Commission (Independent Broadcasting Authority)
Wireless Convergence

D. Japan

Regulatory Laws / Regulatory/Policy Bodies
Wireless Telecommunication / Radio Law
Telecommunications Business Law / Ministry of Internal affairs and Communications (MIC)
Wireless Broadcasting / Broadcast Law / MIC
Wireless Convergence Service

E. Papua New Guinea

Regulatory Laws / Regulatory/Policy Bodies
Wireless Telecommunication / Radio regulations & spectrum act 1997 / Frequency band plans
Wireless Broadcasting / Radio regulations & spectrum act 1997 / Frequency band plans
Wireless Convergence Service

F. Republic of Korea

Regulatory Laws / Regulatory/Policy Bodies
Wireless Telecommunication / Telecommunication Business Act
Radio Waves Act / KCC (Korea Communications Commission)
Wireless Broadcasting / Broadcasting Act / KCC (Korea Communications Commission)
Wireless Convergence Service / - / KCC (Korea Communications Commission)
Q5. (a) Do you have any regulatory or policy challenges to introduce the wireless convergence services which are answered in Q1 & Q2 in your administration? Please describe what they are.

A. Afghanistan

Afghanistan is making the policy.

B. Hong Kong

The existing licensing regime of television program service aims at regulating television services intended for reception within premises (i.e. indoor such as homes and hotel rooms). The traditional television services are readily accessible by families and large number of the public, including children. It is important to ensure through the licensing system that such services are of acceptable standard suitable for viewing by the general public. However, it was argued that a light-handed approach to remove regulatory burden that may stifle the growth and development of a new burgeoning service should be adopted. It is a policy issue to be studied in greater depth that whether mobile TV program services should be licensed under the existing Broadcasting Ordinance (Cap.562) and regulated accordingly through appropriate licensing conditions and code of practice by the relevant authorities or a new regulatory regime should be developed.

C. Indonesia

Since the authority which issues broadcasting and telecommunication license are different, it causes many difficulties. There a lot of issues handled differently while the object is the same. For example the case of 3G mobile TV, the license of cellular network provider was issued by DG Postel. However, when the cellular would like to provide 3G mobile TV service, they are confused which regulator should be dealt with. The same difficulties were faced when Cable TV, Satellite Pay TV, IPTV operators need to process the licensing before provide service. Do they need license from telecommunication authority only? Do they need different license from broadcasting authority or both?

The more complicated issues dealt with broadcasting law, which limit the foreign ownership up to 20%, while some of the Cable TV, Satellite Pay TV, IPTV operators when they were licensed by telecommunication authority, they are not subject to the foreign ownership limitation.

D. Japan